Daily Forex Fundamentals – August 2, 2012

What’s on the Economic Horizon

FOMC Makes No Mention of QE3
ECB: To Keep Rates at 0.75%?
BOE Interest Rate Decision in Focus

U.S. Dollar (USD)

Light the fireworks! Pop the Champagne! The Greenback has rebounded! Thanks to the Fed’s interest rate statement, the Greenback was able to rally versus other major currencies. The U.S. dollar index rose convincingly above the 83.00 handle and is currently trading at 83.56. Read more…

Euro (EUR)

Why, Bernanke, whyyyyy? Thanks to a lack of action from the Fed, high-yielding currencies like the euro took hits against its counterparts. EUR/USD fell by 82 pips, while EUR/JPY also slipped by 21 pips. How will the Fed’s decision affect expectations for Mario Draghi? Read more…

British Pound (GBP)

Blimey! The pound scored its third consecutive loss against the dollar and the yen yesterday. GBP/USD dropped from its opening price of 1.5679 to close at 1.5541. Meanwhile, GBP/JPY finished the day 53 pips below its opening price at 121.96. Read more…

Japanese Yen (JPY)

Despite the recent rebound in the global stock markets, the yen still made some notable gains against higher-yielding currencies in the last 24 hours. The yen, however, was unable to steal some pips from the safe haven dollar. Read more…

Canadian Dollar (CAD)

Down for the second day in a row! Like its comdoll buddies, the Loonie weakened against the Greenback following a disappointing statement from the Fed. USD/CAD dropped to an intraday low of 1.0004 before it capped the day 22 pips higher than its open price. Read more…

Australian Dollar (AUD)

It looks like the bulls have finally run out of steam. After AUD/USD had tapped a new 5-month high on Tuesday, the pair sold-off yesterday. It rose as high as 1.0543 only to find itself sitting at 1.0457 at the end of the U.S. trading session. Read more…

New Zealand Dollar (NZD)

The Kiwi was as flightless as its namesake in yesterday’s trading. NZD/USD traded within a 75-pip range before it finished the day 26 pips below its opening price at .8073. Read more…

Swiss Franc (CHF)

The franc ate the dollar’s dust in yesterday’s trading as USD/CHF skyrocketed on the charts following the FOMC statement. By the day’s close, the pair was up 69 pips from its opening price at .9832. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!

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